1 April 2021
1 April 2021
With the easing of restrictions, the success of the vaccination push and scorching sunshine for many of us, the outlook is feeling more positive.
As vaccines are being rolled out rapidly across developed countries around the world, it means that financial markets have been generally positive. The areas of the world economy that were hit the hardest in 2020 are starting to see an improving picture. Plus, the UK and wider European markets, rather than just US big technology stocks, are doing better too.
This means that if you have a well-diversified pension portfolio, like our default workplace pension, then you’re likely to be seeing more stable investment returns relative to the sustained periods of volatility felt over the past 12 months.
It’s important to remember that pensions are long term investments. It’s very normal for the value of investments to go up and down. Although not guaranteed, the hope and expectation is that values generally go up over the longer term, despite this short term volatility.
Making decisions based on what’s happening in the short term can be a risky thing to do. It might be tempting for example to take money out of your pension – but in doing that, you might miss out on the point when the value goes back up - so you could lose out in the long term.
You can feel assured that our investment experts are continuously monitoring the markets, keeping a close eye on your pension investments and making any changes we feel necessary in response to market events.
If you’re thinking about switching investments, or if you’re taking money out of your pension, we strongly recommend that you speak to a financial adviser to consider your options thoroughly before taking any action.